Steel Dynamics (STLD) Laps the Stock Market: Here's Why
In the latest trading session, Steel Dynamics (STLD) closed at $133.82, marking a +1% move from the previous day. This change outpaced the S&P 500's 0.52% gain on the day. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq increased by 0.9%.
Shares of the steel producer and metals recycler witnessed a gain of 9.78% over the previous month, beating the performance of the Basic Materials sector with its loss of 0.45% and the S&P 500's gain of 3.85%.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.48, reflecting a 13.22% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.61 billion, down 5.89% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.70 per share and revenue of $17.95 billion, indicating changes of -21.74% and -4.51%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.7% increase. As of now, Steel Dynamics holds a Zacks Rank of #2 (Buy).
Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 11.33. This represents a premium compared to its industry's average Forward P/E of 10.84.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
